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17 April 2015
Former Buffalo Employee Pleads Guilty to Theft of Government FundsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Tasha Collier, 38, of Buffalo, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr., to theft and conversion concerning programs receiving federal funds. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.Assistant U.S. Attorney Joseph M. Guerra, who is handling the case, stated that the defendant was employed as a clerk in the Licensing Department of the City of Buffalo between July 2013 and August 25, 2014. As part of her duties as a clerk, Collier was responsible for collecting payments in cash and by check for licenses issued by the City of Buffalo. Between September 2013 and August 2014, the defendant stole approximately $22,000 in cash, funds that were supposed to be remitted to the City Treasury Department.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for July 17, 2015 at 11:00 a.m. before Chief Judge Geraci.Florida Man Sentenced to 30 Months in Jail and 18 Months Home Confinement for Conspiracy to Distribute OxycodoneRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that Michael Serritella, 60, of Palm Harbor, Florida, was sentenced by United States District Judge Nancy Torresen to 30 months in prison to be followed by 3 years of supervised release for conspiracy to distribute oxycodone. The Court imposed an 18 month term of home confinement as one of the conditions of supervised release.
According to court records, on June 13, 2013, law enforcement personnel in Maine intercepted a package addressed to a person in Harrison. Law enforcement obtained a search warrant to search the package and the ensuing search revealed approximately 345 oxycodone pills and a note addressed to the person in Harrison stating the pills would cost $4,000. Law enforcement subsequently arrested the person in Harrison after he arrived at the post office and took possession of the package. Law enforcement personnel subsequently recovered photographic evidence from a post office in Florida that showed the seized package had been mailed by Serritella.
Further investigation revealed that from September 2012, and continuing through May 2013, Serritella mailed an additional twenty-two (22) packages containing oxycodone pills to the person in Harrison, Maine. The person would then distribute the pills in the Harrison area and send payment to Serritella in Florida.
United States Attorney Delahanty said that this operation was successful because of the cooperation of federal and state law enforcement agencies in Maine and Florida. The case was investigated by the United States Postal Service, the Drug Enforcement Administration (DEA), and the Maine Drug Enforcement Agency (MDEA).
Five Sentenced in Tax Fraud SchemeRead the Press Release
PENSACOLA, FLORIDA – John David Castleberry, 64, and Teresa Haggerty, 61, both formerly of Pensacola Beach, Florida, Mark Douglas Stokes, 61, and Melinda K. Stokes, 60, of Colleyville, Texas, and Christopher Stephen Baum, 57, of Arlington, Texas, were sentenced to federal prison yesterday by Senior United States District Judge Roger Vinson for conspiring to commit tax fraud. The sentences were announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The defendants were convicted on January 22, 2015, at the conclusion of a 12-day jury trial. In addition to conspiracy, Castleberry and Haggerty were also convicted for assisting in the preparation and filing of fraudulent tax returns, and Castleberry was convicted for filing his own false federal income tax return.
At trial, the government presented evidence that between 2008 and 2010, the defendants participated in a scheme to prepare and file fraudulent tax returns seeking more than $9 million in refunds. The group used an obscure IRS Form 1099-OID to falsely report that they and/or their clients’ creditors had withheld large amounts of federal income taxes and had paid this money over to the IRS. As a result of the fraudulently-overstated income tax withholding, the tax returns that were filed on behalf of the defendants and/or their clients claimed large refunds to which the defendants and their clients were not entitled.
The defendants were sentenced as follows:
- Castleberry: 126 months in prison and $328,143.90 in restitution to the IRS;
- Haggerty: 18 months in prison and $129,762.85 in restitution to the IRS;
- Mark Stokes: 24 months in prison and $162,608.23 in restitution to the IRS;
- Melinda Stokes: 12 months and 1 day in prison and $162,608.23 in restitution to the IRS; and
- Baum: 51 months in prison and $162,608.23 in restitution to the IRS.
United States Attorney Marsh said, “This week, millions of Americans submitted accurate and timely tax returns. The individuals who defraud the United States Treasury are also stealing from each honest American taxpayer.”
Special Agent in Charge James D. Robnett stated, “Tough sentences like the one handed down to John Castleberry should be a stark reminder to those out there contemplating theft of taxpayer dollars. Even lessor participants pay a heavy price for their participation in tax fraud schemes, and during a time when Americans are all paying their fair share of taxes, the mistakes of these individuals should be a lesson to us all.”
The case was investigated by the Internal Revenue Service – Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA) Dallas Field Division. The case was prosecuted by Assistant United States Attorneys Randall J. Hensel and J. Ryan Love.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Fitchburg Man Sentenced on Child Pornography ChargesRead the Press Release
BOSTON – A Fitchburg man was sentenced today for possessing at least 600 images and 200 videos of child pornography.
Leonel Ramon Grullon, 44, was sentenced by U.S. District Court Judge Leo T. Sorokin to five years in prison, five years of supervised release and restitution. In January 2015, Grullon pleaded guilty to transporting and possessing child pornography.
On May 24, 2014, Grullon landed at Logan International Airport, returning from a trip to the Philippines. During a customs examination, child pornography was found on Grullon’s tablet device. Additional images and videos of child pornography were located on Grullon’s smartphone.
During questioning, Grullon initially denied knowledge that he was in possession of child pornography. After officers described the video located on the Samsung tablet, Grullon admitted possessing and downloading the file and to downloading child pornography from the internet. Grullon stated that he watched child pornography and bestiality videos on different websites, some of which he downloaded to his phone and his desktop computer at his home. Grullon also stated that he had engaged in sexual activity with a 17-year-old boy while in the Philippines.
During a search executed at Grullon’s residence in Fitchburg, forensic examination of Grullon’s numerous digital devices, including computers, DVDs, and hard drives, revealed a substantial collection of child pornography, totaling at least 600 images and 200 videos, largely depicting boys aged 6 to 10-years-old engaged in sexually explicit conduct, including lewd and lascivious posing, sexual acts, and sado-masochistic bondage.
The United States Attorney’s Office asked the Court to impose a 78 month prison sentence. The defense requested a 60 month prison sentence, which was the lowest sentence allowed by law. The United States argued that the imposition of the lowest sentence allowed by law would send the wrong message to victims and those contemplating committing such crimes. In his comments, Judge Sorokin noted that he was imposing the 60 month sentence not because it was the lowest allowed by law, but because he believed it was a fair sentence.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The case was prosecuted by Assistant U.S. Attorney David G. Tobin of Ortiz’s Major Crimes Unit.
Final Defendant Is Sentenced to Prison in Multi-million Dollar Real Estate SchemeRead the Press Release
DENVER – Ronald Benjamin, age 49, of Los Angeles, California, was sentenced by U.S. District Court Judge Wiley Y. Daniel to serve 14 months in federal prison for wire fraud and aiding and abetting, federal law enforcement authorities announced. Following his prison sentence, Benjamin was ordered to spend 3 years on supervised release. Judge Daniel also ordered him to pay over $870,000 in restitution to the victims of his crime.
Benjamin along with six other co-defendants, were indicted by a federal grand jury in Denver on September 1, 2011. Benjamin pled guilty on January 22, 2015 before Judge Daniel. According to the indictment as well as his plea agreement and the plea agreements of his co-conspirators, the scheme began 2006. Benjamin was related by marriage to a member of a business group based out of Culver City, California called Synergy. Synergy was made up of Dale Johnson (President & Chief Executive Officer), Donald Beverly (Vice President of New Business Development), Ronald Benjamin (Regional Manager and Senior Vice President of Sales & Marketing), Jimmy Hutchinson (Chief Financial Officer), and Vincent Jackson (Vice President of Marketing).
In early 2006, Dale Johnson began to present fellow Synergy members with a number of properties available for purchase in Colorado. By early 2006, Johnson had begun to develop business relationships with various real estate professionals in Colorado, to include, Jerry Minney (real estate broker) and Scott Goldberg (mortgage broker). Both Minney and Golderg assisted Synergy members in the purchase of various homes in Colorado.
Starting in 2006, Benjamin and Synergy members began traveling to Colorado where they started purchasing multiple residential properties. The homes were typically purchased in the individual member's own name, using the member's personal credit history to qualify for the purchases. Johnson and others typically identified the property and helped arrange for the purchase by a Synergy member.
As part of the scheme, Synergy members with the assistance of Goldberg, and other persons, submitted "uniform residential loan applications" to lenders in connection with qualifying for home loans. In a number of such loan applications, Synergy members and other buyers provided, or assisted in providing, materially false statements, representations, and omissions to real estate lenders, or the lenders' agents. The materially false information provided to the lenders occurred in the loan application process and concerned such things as the borrowers': income, assets, debts, employment history and/or intent to occupy the home as a primary residence. They also arranged for a portion of lender funds from home purchases to be paid to Synergy Members as "kickbacks" which were concealed from lenders. Kickbacks were concealed from lenders by routing payments through third parties posing as property management companies, such as "5280 Denver Real Estate" and "Willow Property Management", and through realtor commissions paid to Broker One Real Estate.
From approximately May 1, 2006, through September 22, 2006, Benjamin purchased at least 12 homes as part of the scheme. Various falsehoods were found in the loan applications and supporting documents connected with such purchases.
Dale Johnson was sentenced to 34 months in federal prison on March 19, 2014. Donald Beverly was sentenced to 14 months in federal prison on June 17, 2014. Jimmy Hutchinson was sentenced to 14 months in federal prison on March 4, 2014. Vincent Jackson was sentenced to 60 months of probation on October 17, 2012. Jerrold Minney was sentenced to 5 years of probation on August 5, 2014. Scott Goldberg was sentenced to 5 years of probation on June 17, 2014.
This case was investigated by agents with Internal Revenue Service Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI), United States Postal Inspection Service (USPIS) and the U.S. Secret Service.
The case was prosecuted by Assistant United States Attorney Tim Neff.
Federal Judge Sentences Buncombe Co. Man to 12.5 Years in Prison on Child Pornography ChargesRead the Press Release
ASHEVILLE, N.C. – On Thursday, April 16, 2015, U.S. District Judge Martin Reidinger sentenced Robert Lemarr, 42, of Leicester, N.C. to 12.5 years in prison on child pornography charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Lemarr was ordered to serve a lifetime of supervised release, to register as a sex offender, and to pay $20,000 as restitution to his victims.
B.W. Collier, Acting Director of the North Carolina State Bureau of Investigation (SBI) and Acting Asheville Police Chief Steve Belcher join Acting U.S. Attorney Rose in making today’s announcement.
According to court documents and the sentencing hearing, on or about August 2014, Lemarr did knowingly transport and aid and abet the transportation of child pornography. Court records indicate that on or about December 2012, Lemarr possessed over 100,000 images of child pornography, including images of toddlers and infants. Lemarr pleaded guilty to one count of transportation of child pornography and one count of possession of child pornography and has been in federal custody since April 2014. The case was investigated by the Asheville Police Department and the State Bureau of Investigation and assisted by the North Carolina Internet Crimes Against Children Task Force.
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Judge Reidinger also sentenced on Tuesday, April 14, 2015, Robert Maillet, 56, of Asheville, N.C., to 148 months in prison. According to court records, Maillet pleaded guilty in April 2014 to one count of receiving child pornography and one count of possession of child pornography. According to court documents and court records, law enforcement discovered approximately 8,000 images of child pornography in computer hardware that were seized from Maillet’s residence. In addition to the prison term, Judge Reidinger also ordered Maillet to a lifetime of supervised release and to pay $3,000 as restitution to a victim of child pornography. Mailett has been in federal custody since January 2014. The case was investigated by Homeland Security Investigations, SBI, and the Asheville Police Department.
The defendants will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Grand Jury Indicts Former D'Hanis State Bank PresidentRead the Press Release
In San Antonio today, a former D’Hanis State Bank (DSB) president surrendered to federal authorities on federal charges alleging she stole an estimated $6,500 from the bank and filed fraudulent bank regulating reports which overestimated the bank’s assets announced Acting United States Attorney Richard L. Durbin, Jr., Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division and U. S. Secret Service Special Agent in Charge Lee Dotson.
The four–count indictment, returned on Wednesday, charges 54–year-old Laurie Mayfield (aka Laurie H. Scott) of Fredericksburg, TX, with one count of bank fraud and three counts of embezzlement by a bank employee. According to the indictment, from January 2012 until September 2014, Mayfield prepared and filed false Consolidated Reports of Condition and Income (aka “Call Reports) with federal and state bank regulators on behalf of DSB which overstated the assets of DSB by approximately $830,000. Those false reports were included in an approval package submitted to federal regulators by a holding company which owned DSB, as part of a bank acquisition process. Last September, the holding company that owned DSB was purchased by a separate entity which relied on the false DSB Call Reports in their decision-making process.
Each charge calls for up to 30 years in federal prison upon conviction.
During her initial appearance today in San Antonio, Mayfield was released on a $50,000 bond. Arraignment is scheduled for April 28, 2015, before U.S. Magistrate Judge Pamela Mathy.
The case resulted from a joint investigation by the Federal Bureau of Investigation, U.S. Secret Service, Federal Deposit Insurance Corporation (FDIC) and the Office of Inspector General for the Board of Governors of the Federal Reserve System – Consumer Financial Protection Bureau. This case is being prosecuted by Assistant United States Attorney Greg Surovic.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
Federal Court in Memphis, Tennessee, Enters Injunction Against Tax Return PreparerRead the Press Release
The federal court in the Western District of Tennessee has enjoined Stephanie Edmond and her business, the Tax Factory and the Tax Factory Enterprise Inc., from preparing improper federal income tax returns. The court’s order, which was entered with the consent of the parties, prohibits Stephanie Edmond and her businesses from engaging in any conduct that interferes with administering the tax laws. Edmond and her businesses are also prohibited from preparing false returns that include schemes such as reporting non-existent businesses or claiming false education credits. The court also ordered that Edmond and her companies are required to hire a certified public accountant to act as a monitor who can inspect the company’s books and records. The monitor will then be required to report to the United States on a monthly basis as to whether the plaintiff has complied with the internal revenue laws.
Return preparer fraud is one of the Internal Revenue Service’S (IRS) Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Facebook Child Predator Sentenced to 40 Years in Federal PrisonRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore has sentenced Melvin Barber Bridgers, III (34, Tarpon Springs, formerly of Greenville, North Carolina) to 40 years in federal prison for the production, receipt, and distribution of child pornography. The Court also ordered him to forfeit the cellular telephones and computers that he had used to commit the offenses. Bridgers pleaded guilty on December 11, 2014.
According to court documents, from at least December 2012, through his arrest on May 1, 2014, Bridgers used multiple Facebook accounts to pose as a young teenage girl and befriend other girls between the ages of 10 and 16 years old. After befriending the minors, he engaged in online chats with them and used manipulation, coercion, threats, and extortion to compel the minors to send him sexually graphic photographs through Facebook. Bridgers then threatened the minor victims with exposing the sexually graphic photos to their parents, or to other Internet users, in order to extort more sexually graphic photographs and videos from them.
Bridgers, who moved to Tarpon Springs from North Carolina in the fall of 2013, came to law enforcement’s attention when a 12-year-old victim in the Houston, Texas, area reported the Facebook activity to her mother after Bridgers threatened to expose that victim unless she sent him sexually explicit photographs of her 7-year-old sister. The victim’s mother then contacted the authorities.
On May 1, 2014, law enforcement executed a federal search warrant at Bridgers’s residence and obtained computer media containing numerous chat logs with the minor victims, as well as over 28,000 images and videos containing child pornography. Law enforcement agents estimate that over a two-year period, Bridgers attempted to make contact with and sexually extort, or “sextort,” thousands of young girls on Facebook. To date, approximately 129 of Bridgers’ victims have been positively identified, making this one of the largest online child “sextortion” cases prosecuted in the United States.
“The staggering number of victims in this case is sickening,” said Susan L. McCormick, special agent in charge of Homeland Security Investigations - Tampa. “While we cannot undo the damage to these young people, we can ensure that this criminal will not be able to harm them anymore.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations – Tampa, the Pinellas County Sheriff’s Office, and the Webster (Texas) Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ex Siu-E Employee Pleads Guilty to Lying to Federal AgentsRead the Press Release
Kwa Mister, 38, from Fairview Heights, Illinois, pled guilty to an Indictment that charged Making A False Statement to the United States Department of Transportation, Office of Inspector General, and to the U. S. Department of Labor, Office of Labor Racketeering and Fraud Investigations, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
"There is no right to lie to federal agents conducting an investigation." noted United States Attorney Wigginton. "Federal investigations are serious matters. Lying to Agents conducting the investigations could make you a felon and subject you to time in prison."
Mister faces up to ten years in prison, a $250,000 fine and up to three years supervised release. Sentencing is set for July 24, 2015.
Facts behind this case showed that the Illinois Department of Transportation entered into an intergovernmental agreement with Southern Illinois University at Edwardsville (SIUE) to be the fiscal agent for the Highway Construction Preparatory Training Program. The indictment charged that Mister was the Director/Project Manager at the Small Business Development Center at SIUE and served as the project manager for the Highway Construction Preparatory Training Program. An investigation and an audit revealed that Mister obtained five contracts between SIUE and Phoenix Support Services for Phoenix Support Services to purportedly serve as an independent consultant to assist with the training program. From March 2010 through January 2011, an audit discovered five Purchase Orders, five Contracts, and at least four Justification for Sole Source Purchase or Contract forms concerning the procurement of services from "L. A. S" [name removed], Director, d/b/a Phoenix Support Services. The procurement of these contracts with Phoenix Support Services was initiated by the Program Manager for the Highway Construction Preparatory Training Program, Mister. Essentially, Mister procured the services of his mother, L. A. S., for sole source contracts and concealed the family relationship and the potential conflict of interest from SIUE. When the propriety of the contracts with Phoenix Support Services was under investigation by SIUE, Mister lied to SIUE as to whether the owner of Phoenix Support Services was his mother. When this was investigated, Mister lied to federal agents concerning whether he provided false information to SIUE.
The successful prosecution is the result of an investigation conducted by the United States Department of Transportation, Office of Inspector General, the U. S. Department of Labor, Office of Labor Racketeering and Fraud Investigations and the Federal Bureau of Investigation with the assistance of Southern Illinois University and the Office of Executive Inspector General for the Agencies of the Illinois Governor. The prosecution of the case is being handled by Assistant U.S. Attorney Norman R. Smith.
El Salvadorian National Sentenced for Theft of Unemployment Insurance BenefitsRead the Press Release
BOSTON – A Chelsea man was sentenced today for illegally obtaining unemployment insurance benefits.
Oscar P. Valles-Lopez, a/k/a Oscar Valle, 44, was sentenced by U.S. District Court Judge George A. O’Toole, Jr. to one year of probation, the first four months of which is to be served in home confinement, and restitution in the amount of $46,218 to the Massachusetts Division of Unemployment Assistance. In November 2014, Valles-Lopez pleaded guilty to one count of mail fraud.
Valles-Lopez is an El Salvadorian national who illegally reentered the United States in July 2003 after previously living in this country from 1996 to 2001. After working for several years under fraudulently obtained immigration papers, he lost his job in 2009. Although Valles-Lopez knew he was not entitled to unemployment insurance benefits without a valid work permit, he paid $400 for a false permit and made three claims for benefits in 2009, 2010, and 2012. Over the course of several years, Valles-Lopez cashed 111 unemployment checks totaling $46,218.
United States Attorney Carmen M. Ortiz; Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, New York Regional Office; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Dupree Man Sentenced for Abusive Sexual Contact by ForceRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Dupree, South Dakota, man convicted of Abusive Sexual Contact by Force was sentenced on April 6, 2015, by U.S. District Judge Roberto A. Lange.
Christian Whiteman, age 21, was sentenced to 120 months in custody, 5 years of supervised release, $43.20 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Whiteman was indicted by a federal grand jury on July 15, 2014, for Aggravated Sexual Abuse of a Child. On January 21, 2015, he pled guilty to a Superseding Information charging him with Abusive Sexual Contact by Force.
The conviction arose from an incident that occurred between October 1, 2012, and May 29, 2013, at Dupree, when Whiteman engaged in sexual contact by force with a five-year-old child. The victim tried to resist, said no, and attempted to push Whiteman away, but he was too heavy and continued to touch the victim.
This case was investigated by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Whiteman was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Dorchester Men Charged for Attempting to Kill a Man Believed to be a Federal WitnessRead the Press Release
BOSTON – In a third superseding indictment unsealed today, two men were charged with witness tampering by attempting to kill him and for conspiring with each other to do so. These charges were brought in addition to charges previously filed against one of the men involving a multi-state sex trafficking ring that victimized minor and adult women.
Jaquan Casanova a/k/a “Cass,” “Joffe,” “Joffy,” and “Joffy Joe,” 24, of Dorchester was charged for the first time in a third superseding indictment for tampering with a witness by attempting to kill him and for making false statements to a federal agent. Raymond Jeffreys, a/k/a “Skame Dollarz,” “Skame,” “Skamen,” “Define Dollarz,” and “Frenchy,” 27, of Dorchester, Jamaica Plain, and Portland, Maine; and Corey Norris, a/k/a “Case,” and “Jacorey Johnson,” 25, of Dorchester, were also charged in the third superseding indictment. Jeffreys was charged alongside Casanova with tampering with a witness by attempting to kill him and with conspiring with each other to do so. In addition, Jeffreys and Norris were charged again with the multiple sex trafficking counts brought against them in previous indictments.
Specifically, the third superseding indictment charges Jeffreys and Norris with the trafficking and transportation of nine victims, six of whom were under the age of 18, for the purposes of prostitution in Massachusetts, Maine, New Hampshire, Vermont, Rhode Island, Connecticut, Pennsylvania, New Jersey, New York, Maryland, Nevada, Georgia, Florida and California. The charges of tampering with a witness by attempting to kill that witness are related to this sex trafficking organization. The initial indictment in the case, returned in March 2013, charged Norris, Darian Thomson, a/k/a “Bo,” “Dee Bo,” and a woman named Vanessa Grandoit with sex trafficking of a minor from Massachusetts to Rhode Island in December 2012. According to the allegations in the third superseding indictment, in April 2013, Thomson was released from state custody on unrelated state charges in New Jersey and returned to Boston, where he was shot in the head by Casanova at the direction of Jeffreys. The third superseding indictment alleges that Jeffreys believed that Thomson had cooperated with law enforcement in New Jersey and directed the shooting of Thomson with the intent to kill him in order to prevent Thomson from providing information to federal law enforcement regarding his and Norris’ sex trafficking activities.
The third superseding indictment also re-alleges that, at various times from 2006 through 2014, Jeffreys, Norris, and others trafficked the victims for prostitution by force, fraud or coercion and, in the cases of the minor girls, knowing or in reckless disregard that they were under the age of 18. The third superseding indictment contains specific allegations regarding the sex trafficking operation, such as that Jeffreys targeted vulnerable girls and women, including those who were poor and/or homeless, drug addicts, and those who were already working as prostitutes or who had done so in the past. Many of the women either had children when they met Jeffreys and/or became pregnant with his child. Jeffreys used a variety of techniques to persuade and manipulate the women, including making promises about providing for them and their children, and then only doing so if the women performed acts of prostitution. Jeffreys used a variety of techniques to control the girls and women through force, fraud, coercion and a combination of those means, including by threatening the women that he would kill them. The third superseding indictment also alleges that Jeffreys worked with other men as “pimp partners” or “p partners” to share resources, such as car rides, hotel rooms, and payment for online advertisements. Jeffreys taught other men, including Norris and Thomson how to engage in sex trafficking, and these men became “pimp partners” with Jeffreys.
The charge of tampering with a witness by attempting to kill him or conspiring to do so provides a sentence of no greater than 30 years in prison, five years of supervised release, a fine of $250,000, and restitution. Each of the charges of sex trafficking by force, fraud or coercion, provides for a mandatory minimum sentence of 15 years in prison and a maximum sentence of a lifetime in prison, a minimum of five years and a maximum of a lifetime of supervised release, a fine of $250,000, and restitution. Each of the charges of sex trafficking of a minor provides for a mandatory minimum sentence of 10 years in prison and a maximum of a lifetime in prison, five years of supervised release, a fine of $250,000, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz, Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Boston Police Commissioner William Evans, made the announcement today. The witness tampering charges were investigated jointly by HSI and the Boston Police Department’s Human Trafficking Unit and Homicide Unit. The sex trafficking charges were investigated jointly by HSI, BPD, and the Federal Bureau of Investigation.
The U.S. Attorney’s Office also wishes to recognize and thank Shawn Meehan, Resident Agent in Charge of the HSI Portland Office; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Aaron Steps, Supervisory Senior Resident Agent in Charge of the FBI Maine Office; the Suffolk County District Attorney’s Office; Cumberland County (Maine) District Attorney’s Office; the United States Attorney’s Office for the District of Maine; the Massachusetts State Police; the Portland (Maine), Old Town (Maine), Braintree, and South Portland (Maine) Police Departments; the Maine Drug Enforcement Agency; and the Cumberland County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorneys Amy Harman Burkart and Christopher Pohl of Ortiz’s Civil Rights Enforcement Team and Special Assistant United States Attorney and Suffolk County Assistant District Attorney David S. Bradley.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
Consent Judgment and Injunction Obtained Against Jan Charles Gray and His Custer BusinessesRead the Press Release
The United States Attorney’s Office (USAO) and the United States Department of Labor (DOL) recently secured a consent judgment of over $8,000.00 and a permanent injunction in South Dakota District Court, ordering Jan Charles Gray and his businesses in Custer, South Dakota, to comply with the Fair Labor Standards Act (FLSA) and to pay back wages and overtime pay owed to former employees. The Custer businesses include the Custer Motel, the All American Inn, and the American President Resorts. The injunction requires Gray and his businesses to train managers and employees about their rights under the FLSA, pay in accordance with the minimum wage and overtime requirements of the law, maintain accurate records, and not retaliate against any employee who files a complaint with, or cooperates in any investigation by the DOL. Gray has paid the back wages due. Gray is from Los Angeles, CA.
“The former employees involved in this investigation are getting the long overdue minimum wage and overtime pay to which they are entitled,” said Acting U.S. Attorney Randolph J. Seiler. “The USAO is dedicated to taking appropriate enforcement actions with respect to any violations of the FLSA.”
“The courts’ rulings make a strong statement about the importance of an employer’s obligation to comply with the law,” added Cynthia Watson, the DOL Wage and Hour Division’s Regional Administrator in Dallas, Texas. “We are committed to securing lasting compliance with the labor laws we enforce, and we are pleased that the judges in these cases enjoined the defendants from further violations of the FLSA.”
For more information about federal wage laws administered by the Wage and Hour Division, call the DOL’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd.
Chillicothe Man Sentenced on Bank Embezzlement and IRS ChargesRead the Press Release
COLUMBUS, OHIO – Joseph P. Molnar, 51, of Chillicothe, Ohio, was sentenced to 72 months in prison, five years of supervised release, and was ordered to pay $4,076,189.44 in restitution to Huntington National Bank and $987,011.66 in restitution to the Internal Revenue Service (IRS) for embezzling approximately $4,076,189.44 from Huntington National Bank and willfully filing a false federal income tax return with the IRS. Molnar previously pleaded guilty to the aforementioned charges on October 24, 2014.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation, and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
According to court documents, between July 2005 and July 2012 Joseph Molnar was an employee of Huntington National Bank. Specifically, Molnar was a Managing Director for a Huntington subsidiary, Huntington Community Development Corporation. Molnar misapplied and embezzled approximately $4,076,189.44 of Huntington National Bank’s funds by falsely representing that he was paying “placement fees” or “advisory fees” for property management companies as part of several affordable housing property deals that had closed with Huntington National Bank. Instead, Molnar withdrew the funds under false pretenses and placed that money into his own accounts for his own personal use.
In addition, Molnar omitted these funds as income on his own income tax returns. Molnar filed a false income tax return with the IRS for the 2009 income tax year by falsely stating that he had an adjusted gross income of $94,358, when in actuality his income was approximately $1,226,103.16.
For 2008 through 2012 income tax years, Molnar underreported his income by a combined total of $3,054,064.44, which has resulted in total tax due and owing in the amount of approximately $987,011.66 to the IRS.
“For seven years Joseph Molnar abused his fiduciary responsibility as an executive at Huntington National Bank,” said Angela L. Byers, Special Agent in Charge of the FBI’s Cincinnati Division. “In doing so, he took advantage of his position of trust to defraud the bank and its customers for his own pecuniary gain. The FBI and other law enforcement agencies rely heavily on the trust and cooperation of members of the financial industry and citizens to assist us in performing our mission. Through this cooperative effort we are able to identify the Joseph Molnars of the world and hold them accountable for their own greed.”
"The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel," said Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office. "The federal tax laws are normally violated in these cases which can add to additional jail time. As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm."
U.S. Attorney Stewart commended the investigation by the IRS and FBI, Assistant United States Attorney Daniel A. Brown, who prosecuted this case.
Child Molester Sentenced to 20 Years in Federal PrisonsRead the Press Release
Contact Person: Brad Parham (843) 665-6688
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Joseph Smith was sentenced April 17, 2015, in federal court in Florence, South Carolina, for Production of Child Pornography, a violation of 18 U.S.C. § 2251(a), and Possession of Child Pornography, a violation of 18 U.S.C. § 2252A(a)(5)(B). Chief United States District Judge R. Bryan Harwell of Florence sentenced Smith to 240 months imprisonment and supervised release for life
Evidence presented at the guilty plea hearing established that Smith made numerous video recordings of himself while molesting a minor child. Agents discovered that Smith then distributed these sexually explicit videos over the internet. During a search of Smith’s computer, agents also uncovered a significant amount of child pornography depicting sexually explicit images of prepubescent children.
The case was investigated by agents of the Immigration and Custom Enforcement. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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California Man Pleads Guilty to Fleeing from A Border Patrol Checkpoint in New MexicoRead the Press Release
ALBUQUERQUE – Carlos Torres, 39, of Huntington Park, Calif., pleaded guilty today in federal court in Las Cruces, N.M., to fleeing from a U.S. Border Patrol checkpoint at a high rate of speed. The guilty plea was entered without the benefit of a plea agreement.
Torres was arrested on Jan. 28, 2015, during a routine inspection at the U.S. Border Patrol checkpoint on Interstate 10 in Doña Ana County, N.M. According to the criminal complaint, after Torres entered the checkpoint, Border Patrol agents directed him to a secondary inspection area. As agents were walking towards Torres’ vehicle, Torres drove away from the checkpoint and led agents in a high speed pursuit. When he was arrested, the agents found approximately 25 grams of methamphetamine in Torres’ vehicle.
During today’s plea hearing, Torres pled guilty to a felony information charging him with high speed flight from a immigration checkpoint and fleeing from federal law enforcement agents.
At sentencing, Torres faces a statutory maximum penalty of five years in federal prison. Torres’ sentencing hearing has yet to be scheduled.
This case was investigated by the Las Cruces office of the U.S. Border Patrol and is being prosecuted by Assistant U.S. Attorney Edwin Garreth Winstead, III of the U.S. Attorney’s Las Cruces Branch Office.
Augusta Resident Receives 20 Years in PrisonRead the Press Release
Augusta, GA: Ricky Lee Kennedy, 32, of Augusta, Georgia, was sentenced earlier this week by United States District Court Judge J. Randal Hall to 20 years in prison for possessing with the intent to distribute methamphetamine. There is no parole in the federal system.
Evidence presented during Kennedy’s guilty plea and sentencing hearings revealed that on July 29, 2014, Columbia County Sheriff’s Office (CCSO) received information that Kennedy would be bringing methamphetamine from Atlanta to the Columbia County area for distribution. CCSO Investigators surveilled Kennedy returning to Columbia County and, with the assistance of the Harlem Police Department, Kennedy was stopped. A drug-canine alerted on Kennedy’s vehicle where over 400 grams of pure methamphetamine and two loaded firearms were found. Kennedy had two prior serious drug convictions.
Kennedy’s case was prosecuted as part of Project Ceasefire, a joint firearms initiative of the U. S. Attorney’s Office, the ATF, and local law enforcement agencies. Project Ceasefire is a cooperative effort between federal and local law enforcement agencies to combat gun crime by targeting violent felons and drug dealers who illegally possess firearms and narcotics.
Kennedy’s case was investigated by the CCSO and the ATF. Assistant United States Attorney Nancy C. Greenwood prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201‑2547.
Alton Woman Sentenced to Prison for False Tax ReturnsRead the Press Release
Aisha Wright, 33, of Alton, Illinois, was sentenced to serve forty-six months in federal prison, followed by three years supervised release, as a result of her convictions for two counts of making false claims against the United States, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Wright operated A W Mobile Taxes, in Alton, Illinois. Potential fraud was detected by the Scheme Development Center of the I.R.S. Two undercover agents went to Wright to have their tax returns prepared and Aisha Wright prepared fraudulent returns for both of the undercover agents. Further investigation revealed that Wright was systematically preparing false returns for taxpayers that falsified Schedule A deductions, Schedule C self-employment income, and falsified education expenses for receipt of the education tax credit. The court determined that over a three year period Wright filed 492 federal income tax returns that caused a total actual loss to the United States in excess of $1,000,000. Wright was ordered, as part of her sentence, to pay restitution in the amount of $1,052,302.86. She was also ordered to serve 450 hours of community service as a condition of supervised release, following her release from prison.
The successful prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations, the U.S. Postal Inspection Service, the U.S. Secret Service, and the Shelby County Sheriff's Office. The case was prosecuted by Assistant United States Attorney Norman R. Smith.
Acton Woman Convicted of Distributing "N-Bomb"Read the Press Release
BOSTON – An Acton woman pleaded guilty today to distributing 25B-NBOMe, a synthetic hallucinogen, also known as “N-Bomb” that is gaining popularity among young people.
Mikayla Brogna, 19, pleaded guilty to a superseding information that charged her with distribution of 25B-NBOMe, a Schedule I controlled substance. Brogna was indicted in November 2014 and is scheduled to be sentenced on Aug. 11, 2015 before U.S. District Court Senior Judge Mark L. Wolf.
On August 9, 2014, the defendant supplied 14 tabs of 25B-NBOMe (NBOMe) to a 16-year-old high school boy for $100. The student later ingested the drug and experienced a non-fatal overdose requiring hospitalization. NBOMe, is a psychedelic drug that can be similar in appearance to LSD and can take many forms, including pills, powder, liquid drops, and colorful paper blotter tabs. NBOMe is a synthetic hallucinogen that is growing in popularity among young people who are unaware of its potentially lethal effects, even in small doses. Across the country, numerous deaths have been linked to NBOMe.
The charging statute provides a sentence of no greater than 20 years in prison, a minimum of three years of supervised release, and a $1 million fine. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. Assistance with this investigation was also provided by the Concord, Acton, Chelmsford, Lincoln, Sudbury, and Westford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Linda M. Ricci of Ortiz’s Organized Crime Drug Enforcement Task Force.
Acoma Pueblo Man Sentenced for Misdemeanor Assault ChargeRead the Press Release
ALBUQUERQUE – Eric J. Louis, Jr., 35, a member and resident of Acoma Pueblo, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to a two-year term of probation for his misdemeanor assault conviction.
Louis was arrested in Aug. 2013, on a criminal complaint alleging that he assaulted an officer of the Acoma Pueblo Tribal Police Department who responded to a domestic violence call at a residence within Acoma Pueblo. When the officer attempted to arrest Louis for disorderly conduct and intoxication, Louis assaulted the officer by wrestling with the officer and attempting to get the officer’s taser.
Louis was subsequently indicted on Sept. 10, 2013, and charged with committing an assault with a dangerous weapon on Aug. 14, 2013, in Cibola County, N.M.
On Aug. 8, 2014, Louis entered a guilty plea to a misdemeanor information charging him with assault by striking, beating or wounding, and admitted that he assaulted a tribal officer by striking him.
The case was investigated by the Laguna Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Accused Isis Recruiter Now Charged with Assault of Jail DeputiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned an Indictment charging Mufid A. Elfgeeh, 31, of Rochester, NY, with three counts of assault. The charges carry a maximum sentence of 20 years in prison.
Assistant U.S. Attorneys Brett A. Harvey and Frank H. Sherman, who are handling the case, stated that according to the indictment, on November 10, 2014, Elfgeeh assaulted three jail deputies at the Monroe County Jail.
Elfgeeh was previously indicted in September 2014 and charged with three counts of attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a/k/a the Islamic State of Iraq and Syria (ISIS), a designated foreign terrorist organization that is currently conducting a campaign of violence in Syria and Iraq, one count of attempted murder of current and former members of the United States military, one count of possessing firearms equipped with silencers in furtherance of a crime of violence, and two counts of receipt and possession of unregistered firearm silencers. At the time of the alleged assaults at the Monroe County Jail, Elfgeeh was being detained on these earlier charges and he remains in custody.
The latest indictment is the result of an investigation by the Federal Bureau of Investigation Joint Terrorism Task Force which includes the Monroe County Sheriff’s Office, the Greece Police Department, New York State Police, Rochester Police Department, U.S. Border Patrol, and U.S. Customs and Border Protection.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Abilene Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
ABILENE, Texas —Rockey Koonce, 39, of Stamford, Texas, appeared yesterday in federal court in Abilene and pleaded guilty, before U.S. Magistrate Judge E. Scott Frost, to one count of receipt of child pornography. The announcement was made today by John Parker, Acting U.S. Attorney for the Northern District of Texas.
Koonce, who is on bond, faces a statutory penalty of not less than five, nor more than 20 years in federal prison, a $250,000 fine, and a lifetime of supervised release. Sentencing will be set at a later date.
According to documents filed in the case, Koonce used a laptop computer at his residence, connected to the Internet, to search for images and videos depicting minors engaged in sexually explicit conduct. In May 2014, Koonce knowingly received a video file depicting a prepubescent female, under age 18, engaged in sexually explicit conduct. Koonce received the video through the use of peer-to-peer file sharing software.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation (FBI), the Wichita Falls Police Department, and the Stamford Police Department investigated. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
16 April 2015
“Tax Day” Was Not Business as Usual for Naval Preparer Who Filed False Tax Returns for Fellow Service MembersRead the Press Release
Former U.S. Navy sailor Leonard Damon Washington was arraigned today on charges that he prepared and filed false tax returns that resulted in inflated refunds for fellow service members and big fees for him.
Leonard Damon Washington, who was assigned to the USS Higgins in 2010 when the alleged crimes began, was arrested on Tax Day, April 15, 2015, in Springdale, Arkansas. He was arraigned in federal court in the Western District of Arkansas before U.S. Magistrate Judge Erin Setser on charges of tax evasion and aiding and assisting in the preparation of false tax returns. The judge set bond at $50,000.
According to the indictment, which was unsealed today, Washington marketed himself to Navy service members as someone who could assist in preparing and filing income tax returns in exchange for a fee. During 2010, Washington convinced fellow Navy service members to let him prepare their income tax returns, but concealed his role as a paid tax preparer from the Internal Revenue Service (IRS). Among the false and misleading representations he made to his fellow Navy service members, Washington stated that he could obtain special tax deductions that other tax preparation services could not obtain or were unaware. The indictment also alleges that Washington created false and fraudulent income tax returns and tax forms for his clients and generated substantial false tax refunds. These false refunds allowed Washington to charge tax preparation fees in excess of $100,000. Washington directed these fees into multiple bank accounts (both in his name and in the name of nominees) in order to frustrate and impede the IRS’s efforts at determining his true income.
“Navy service members place a substantial amount of trust in their colleagues, especially while they are protecting our freedoms. It is intolerable when one of their own defrauds both his fellow Navy service members and the IRS,” said U.S. Attorney Laura E. Duffy. She reminded the public to always review a copy of any tax return prepared and filed on their behalf.
Erick Martinez, Special Agent in Charge for IRS Criminal Investigation commented, “The IRS wants everyone who files a tax return to take advantage of the deductions and credits to which they are entitled by law; however, no one is entitled to defraud the government or other American taxpayers. As the traditional tax filing season concludes, the IRS reminds you to always review your return before signing it, and question any items you do not understand.” The government is seeking the removal of Washington to face charges in the Southern District of California.
DEFENDANT Case Number: 15CR0951-JM Leonard D. Washington Age: 42 CHARGESCount 1: Title 26, United States Code, Section 7201 B Tax Evasion.
Maximum penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, 3 years of supervised releaseCounts 2-7: Title 26, United States Code, Section 7206(2) – Aiding and Assisting Preparation of False Tax Returns.
INVESTIGATING AGENCIES
Maximum penalties per count: 3 years’ imprisonment, $100,000 fine, $100 special assessment, 1 year of supervised releaseInternal Revenue Service-Criminal Investigation
* An indictment is not evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Worcester Woman Sentenced for Aggravated Identity Theft and Social Security FraudRead the Press Release
BOSTON – A Worcester woman was sentenced yesterday in U.S. District Court in Worcester for fraudulently receiving more than $50,000 of disability benefits under a stolen identity.
Lydean Howe, a/k/a “Sally Smith,” 52, was sentenced by U.S. District Court Judge Timothy S. Hillman to two years and one day in prison and three years of supervised release. In November 2014, Howe pleaded guilty to one count of aggravated identity theft and one count of Social Security fraud.
In 1998, Howe stole the identity of another individual, and used the stolen identity to work, obtain a driver’s license and other identification documents, and to obtain credit cards, among other things. In 2008, using the stolen identity, Howe applied for and obtained Social Security Administration disability benefits, falsely claiming that the other individual’s social security number had been assigned to her by the Social Security Administration. When first questioned by the Social Security Administration about her identity, Howe claimed that she was a victim of identity theft and thereafter attempted to divert law enforcement’s focus to another person. Howe obtained $50,827 in disability benefits under the stolen identity.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Michelle L. Dineen Jerrett and Greg A. Friedholm of Ortiz’s Worcester Branch Office.
Witness Tampering Lands Mother in Federal PrisRead the Press Release
Montgomery, Ala. – Bernadette Dickerson, a 47-year old Montgomery resident, was sentenced yesterday to 12 months and one day in prison as a result of her December 2014 guilty plea to witness tampering, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
In January of 2014, Dickerson's son was involved in an automobile accident in Montgomery. After the accident, he was arrested by the Montgomery Police Department when witnesses told police they saw him hide a gun case in a drainage ditch. The gun case was found and contained a handgun, an assault rifle, four magazines, including one 60-round capacity magazine, and over 1200 rounds of assorted ammunition. Dickerson's son was later indicted on federal charges for being a felon in possession of firearms.
Shortly after her son’s indictment, Dickerson began contacting witnesses, including a woman who worked at the tire store across the street from the incident, the passenger in the car involved in the car wreck, and the driver of the car that struck her son's vehicle. The driver told FBI agents that a female who said her last name was Dickerson called him several times, asking him to testify that he did not see her son with guns. In exchange, she would pay him cash and give him a car.
According to court documents, Dickerson and her son also had specific discussions about Dickerson contacting the witnesses on her son's behalf and offering money if they agreed not to testify.
“My office takes witness tampering very seriously,” stated U.S. Attorney George Beck. “In order to protect the integrity of our court system, my office will aggressively prosecute those who use bribes or intimidation to hide the truth and obstruct justice.”
"Today’s sentencing is an example of how those who intentionally bribe and threaten witnesses for their own personal gain will be prosecuted to the maximum extent,” stated FBI Special Agent in Charge Robert F. Lasky. “The FBI’s Central Alabama Safe Streets Violent Gang Task Force will continue to pursue those who try and disrupt the level playing field in a court of law.”
The case was investigated by the FBI's Central Alabama Safe Streets Violent Gang task force, with assistance from the Montgomery Police Department. The case was prosecuted by Assistant United States Attorney John Geer.
Washington State Auditor Troy X. Kelley Indicted for Filing False Tax Returns, False Declarations, Obstruction and Possession of Stolen PropertyRead the Press Release
A U.S. Grand Jury in Seattle has returned a ten count indictment against TROY X. KELLEY, 50, of Tacoma for his scheme to keep stolen money and hide it from both the IRS and those due a refund related to their purchase of a home or refinance of a home mortgage, announced Acting U.S. Attorney Annette L. Hayes. KELLEY currently serves as the elected Washington State Auditor. The majority of the criminal conduct detailed in the indictment spans years prior to KELLEY’s election to statewide office. However, some of the criminal conduct detailed in the indictment occurred following his election. KELLEY is scheduled to appear in U.S. District Court in Tacoma at 2:30 today.
“Mr. Kelley spun a web of lies in an effort to avoid paying his taxes and keep more than a million dollars that he knew did not belong to him, but instead should have been returned to thousands of homeowners across this state,” said Acting U.S. Attorney Annette L. Hayes. “I commend the FBI and the Internal Revenue Service Criminal Investigation for their diligent work to piece together the voluminous records that form the basis for the charges in this case.”
According to the indictment, between 2003 and 2008, KELLEY operated a business that was paid by real estate title companies to track documents related to real estate sales and refinancings. KELLEY had agreements with those companies for the fees he could charge in connection with the document-tracking work. While the title companies withheld $100-$150 on each loan to pay the fee, the bulk of the money was to be returned to the borrower with KELLEY’s company being paid $15- $20 per transaction. However, the indictment alleges, in most cases, KELLEY kept the entire amount withheld on each loan resulting in more than $2 million in stolen money. This conduct is the basis for count one of the indictment: Possession and concealment of stolen property. When the amount withheld by title companies became the subject of civil litigation, the indictment alleges KELLEY obstructed the litigation, repeatedly lying in a declaration and in depositions while under oath. For this conduct KELLEY is charged with four counts of false declarations and one count of attempted obstruction of a civil lawsuit. Further, the indictment alleges KELLEY failed to pay federal taxes and obstructed the IRS in its efforts to collect taxes from him. He is charged with corrupt interference with Internal Revenue laws and two counts of filing false income tax returns. Finally, KELLEY is charged with making false statements to Internal Revenue Service agents who questioned him about his scheme in April 2013.
“Today’s action demonstrates our collective efforts to enforce the law,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation. “IRS CI is committed to unraveling the complex financial transactions individuals might use to attempt to conceal their taxable income. To build faith in our tax system, honest taxpayers must be confident that everyone is paying their fair share.”
“The public deserves integrity and honesty from elected officials,” said Special Agent in Charge Frank Montoya, Jr., of the FBI’s Seattle Division. “For that reason, identifying and investigating public corruption is a top priority for the FBI.”
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Possession and concealment of stolen property is punishable by up to ten years in prison. Attempted obstruction of civil litigation is punishable by up to twenty years in prison. False declarations and false statements are punishable by up to five years in prison. The remaining charges are punishable by up to three years in prison.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and the FBI.
The case is being prosecuted by Assistant United States Attorneys Arlen Storm, Kathryn Frierson and Andrew Friedman.
Valentin Valdés-Ayala Guilty of Bankruptcy FraudRead the Press Release
Yesterday evening after eight days of jury trial, Valentín Valdés-Ayala was found guilty of 31 counts of bankruptcy fraud, falsification of bankruptcy records, wire fraud, aggravated identity theft and contempt of court, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. The Federal Bureau of Investigations, in collaboration with the U.S. Trustee, was in charge of the investigation.
During the course of the trial the evidence proved that the purpose of the fraudulent scheme was to obtain financial gain and to hinder, delay and obstruct collection efforts by the Commonwealth of Puerto Rico, through ASUME, and/or by child support pension beneficiaries against child support debtors who had failed to comply with their child support obligations.
Valdés-Ayala incorporated a non-profit organization, Fundacion Lucha Pro-Padres Convictos por Pencion Corp. [sic], with the alleged purpose of defending the principles and dignity of every father convicted for failure to make child support payments and obtaining and promoting the release of all inmates as well as defending father-child relationships. He also created Tears in Prison, Inc., a for-profit corporation that was incorporated with the stated purpose of preparing bankruptcy petitions.
The defendant, through Fundacion Lucha Pro-Padres Convictos por Pencion Corp. [sic], solicited individuals who were incarcerated or facing incarceration for failure to comply with their child support payments, promising those individuals that – in exchange for fees paid to him and/or his entity – they would be released from prison and/or avoid imprisonment without first having to make any payments towards their child support debt. Valdés-Ayala at times also promised that he would obtain the elimination and/or reduction of the underlying child support debt.
The defendant would then file or cause to be filed Chapter 13 bankruptcy petitions which allowed the debtors to be released from prison without first having to pay overdue child support to ASUME due to the operation of bankruptcy’s automatic stay against collection actions.
With respect to his fees, Valdés-Ayala indicated to his prospective clients that his fee included legal representation (even though he is not a lawyer), filing fees and a term membership in his entity, which would guarantee them legal representation in their child support case throughout the duration of their term membership. Upon receipt of payment the defendant would provide a receipt stating that the payment was a donation.
The defendant prepared and filed and/or caused to be filed Chapter 13 bankruptcy petitions in the clients’ names. The Chapter 13 petitions were not filed for the purpose of having the clients engage Chapter 13 reorganization of their debts, but for the improper purpose of using the U.S. bankruptcy laws to collect fees by promising relief from incarceration.
As part of the scheme to defraud devised by Valdés-Ayala, he assisted hundreds of debtors with the filing of false and fraudulent Chapter 13 bankruptcy petitions. From August 2010 to November 2013, 412 applications for credit counseling certificates were processed through Valdés-Ayala’s account with the Credit Advisors Foundation. These certificates were then included along with the bankruptcy petition.
“The defendant defrauded not only his clients, but also child support beneficiaries and the government Puerto Rico, and he did so by using the U.S. Bankruptcy courts,” said U.S. Attorney Rodríguez-Vélez. “Valdés-Ayala sought to obtain as much money as possible, for as long as possible, from his clients. When the fraudulent bankruptcy petitions ultimately were dismissed by the bankruptcy courts, the defendant ceased contact with his clients, who again faced imminent incarceration for past due child support payments.”
“The FBI will continue to work with the U.S. Attorney’s Office and Bankruptcy Trustee to ensure the public’s continued trust in the bankruptcy process,” said Special Agent in Charge Carlos Cases of the FBI’s Puerto Rico office.
The case was prosecuted by Assistant U.S. Attorneys Mariana Bauzá and John MathewsaII. The sentencing hearing was scheduled for Aug. 6, 2015. The defendant is facing a maximum of 30 years in prison and a mandatory consecutive sentence of two years for each of the two aggravated identity theft charges. The government requested a money judgment in the amount of $648,900.
Valencia, California, Doctor Indicted in $6.5 Million Medicare Fraud SchemeRead the Press Release
An indictment was unsealed today charging a doctor from Valencia, California, with operating a $6.5 million scheme to defraud the Medicare program by billing Medicare for medical services that were not actually provided.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California, Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division and Special Agent in Charge Glenn R. Ferry of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Region made the announcement.
Gary J. Ordog, 60, of Valencia, California, was indicted by a federal grand jury in the Central District of California on March 27, 2015, for nine counts of health care fraud. The indictment alleges that Ordog billed Medicare for services that were not actually provided to the Medicare beneficiaries.
According to allegations in the indictment, Ordog was a physician who purportedly assisted beneficiaries with various toxicological symptoms, including those related to mold and chemical exposures. Ordog would allegedly see a beneficiary at least once in connection with the potential evaluation and management of his or her conditions. Subsequently, often several years after the last time he saw a particular beneficiary, Ordog would allegedly submit false claims to Medicare for purported additional visits with the same beneficiary, when the visits never actually occurred. In certain instances, Ordog allegedly billed Medicare for services provided to beneficiaries who were deceased as of the claimed date of service.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
This case is being investigated by HHS-OIG and the FBI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.This case is being prosecuted by Trial Attorney Ritesh Srivastava of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Ordog Indictment
Two Union Employees Plead Guilty to Thefts from Health Care FundRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jerad Stevens, 29, of, Ithaca, NY, and Gregory Haller, 45, of Lawrenceville, Pennsylvania, pleaded guilty before U.S. Magistrate Judge Marian W. Payson to stealing from a health care benefit program. The charge carries a maximum sentence one year in prison, a fine of $100,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the matter, stated that Stevens and Haller, members of the Plumbers & Steamfitters Local 267, participated in a scheme devised by Paul Harnas, Jr. to submit fraudulent dental claims for reimbursement from the Local 267 health fund.
Harnas prepared false dental receipts, and provided them to Stevens, Haller and others to support fraudulent claims for reimbursement by Harnas, Stevens, Haller and others, that totaled approximately $65,000.
Harnas was convicted for his role in the crimes and is awaiting sentencing.
The pleas are the culmination of an investigation by Special Agents of the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia of the New York Regional Office, and the New York State Department of Financial Services, Frauds Bureau, under the direction of Superintendent Benjamin Lawsky.
Haller is scheduled to be sentenced on July 13, 2015, at 10:00 a.m., Stevens on July 14, 2015 at 9:30 a.m., both before Magistrate Judge Payson.
Two Plead Guilty in Tax Refund Fraud and Identity Theft SchemeRead the Press Release
PANAMA CITY, FLORIDA – Jermaine Winters, 39, of Coleman, Florida, and Rosetta Presley, 23, of Chipley, Florida, pled guilty today to conspiracy to commit wire fraud, wire fraud, and identity theft in connection with the electronic filing of false federal income tax returns. The pleas were announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
During their pleas, Winters and Presley admitted that between July 2011 and July 2012, they conspired to file fraudulent tax returns using the stolen identities of assisted-living facility residents at the Dogwood Inn in Bonifay, Florida, clinical laboratory patients at Sun Laboratory Services in the Tampa, Florida area, and others, in an attempt to steal more than $118,000 from the United States Treasury. Refunds issued on the fraudulent returns were loaded onto prepaid debit cards mailed to addresses in the Northern District of Florida.
Sentencing is scheduled for July 1, 2015, before United States District Judge Richard Smoak at the United States Courthouse, 30 West Government Street, Panama City, Florida. Winters and Presley face a maximum 20 years’ imprisonment for wire fraud, and a two-year minimum mandatory term of imprisonment for aggravated identity theft that must run consecutively to any other sentence.
The case is being investigated by the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Florida Department of Law Enforcement, the Chipley Police Department, and the Leon County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Gayle Littleton.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Two Aliens Indicted for Illegal Reentry ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Juan Valencia-Diaz, age 41, a citizen of Mexico, and Jaime Geovany Bustos-Heras, age 36, Ecuador, were indicted yesterday by a federal grand jury in Harrisburg on illegal re-entry charges.
According to United States Attorney Peter Smith, Valencia-Diaz was allegedly deported from the United States on September 5, 2008 and again on October 7, 2008 after he was convicted of driving under the influence. He allegedly re-entered the United States illegally sometime prior to September 2, 2014, when he was arrested by Immigrations and Customs Enforcement (ICE) agents at York County Prison, where he is incarcerated following his third conviction for driving under the influence.
The case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Bustos-Heras was allegedly deported from the United States on November 1, 2007 after he was convicted of simple assault. He allegedly re-entered the United States illegally sometime prior to March 2, 2015, when he was arrested by Immigrations and Customs Enforcement (ICE) agents at his Harrisburg residence.
Bustos-Heras is currently incarcerated at the York County Prison. The case is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Three Members of International Synthetic Drug-Trafficking Organization Arrested in Los AngelesRead the Press Release
Three members of an international synthetic drug-trafficking organization—responsible for selling synthetic drugs with brand names like Twilite, Passion Sense, Stoopid, Black Diamond, and Platinum—were arrested in Los Angeles on Tuesday. The federal charges were unsealed in the Northern District of New York today. According to documents also unsealed in the Southern District of Indiana today, a leader of the organization has already pleaded guilty to federal drug-trafficking charges.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Richard S. Hartunian of the Northern District of New York and U.S. Attorney Josh J. Minkler of the Southern District of Indiana made the announcement.
“The manufacture and distribution of synthetic narcotics is a growing problem that is especially dangerous to the young people of our communities,” said Assistant Attorney General Caldwell. “Drug traffickers peddle these illegal synthetic drugs with harmless sounding names to impressionable youth who are typically unaware of the harmful chemicals they actually are ingesting. The Criminal Division will continue to partner with local and federal law enforcement around the nation to stem the flow of these unsafe and illegal substances and bring the traffickers to justice.”
“Despite the efforts of these drug traffickers to evade prosecution through the creation of synthetic drugs, these indictments demonstrate the ability of law enforcement to effectively respond to those who market these dangerous substances,” said U.S. Attorney Hartunian. “We will continue to use all our resources to combat this national problem.”
“Synthetic narcotics are not the harmless product traffickers and users make them out to be,” said U.S. Attorney Minkler. “They are mind-altering substances that cause psychosis and even death with our nation’s youth.”
Andrew Raymond, 36, Brian Requena, 37, and Zefren Michael, 35, all of Los Angeles, California, were indicted in the Northern District of New York for conspiracy to possess with the intent to distribute and to distribute controlled substance analogues, intending that those analogues be used for human consumption. Raymond and Requena were also charged with a money laundering conspiracy.
In a related case, Roger Upchurch, 66, of Indianapolis, Indiana, pleaded guilty on March 11, 2015, before Chief U.S. District Judge Richard L. Young in the Southern District of Indiana, to conspiracy to distribute a controlled substance analogue and money laundering. Upchurch also forfeited over $2 million in cash and other assets obtained from his illegal activities, including a house, two cars and a Sweetwater pontoon boat. A sentencing date has not yet been scheduled.
As part of his guilty plea, Upchurch admitted that he was a leading member of the international drug-trafficking organization, working in the Los Angeles-area, to produce and distribute thousands of kilograms of smokable synthetic cannabinoids (SSCs) with brand names such as Twilite, Passion Sense, Stoopid, Black Diamond and Platinum. SSCs, also popularly known as “Spice,” are smokable drugs that are designed to mimic marijuana. The synthetic chemicals used to produce these SSCs were imported from China, then applied to a plant-like substance and sold like marijuana in a smokable form.
According to allegations in the indictment, Raymond, Requena, Michaels, and others conspired with Upchurch to manufacture SSCs for distribution throughout the United States. In an effort to avoid detection and prosecution by law enforcement, the drug-trafficking organization allegedly mislabeled and fraudulently labeled packages with “not for human consumption” and other false statements, including falsely marketing their products as potpourri, incense or aroma.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This investigation is part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, and these cases were supported under the DEA Special Operations Division’s Project Synergy. These cases are the result of investigative efforts led by the DEA’s Indianapolis Field Office, with valuable assistance provided by the U.S. Postal Inspection Service and the Indianapolis Metropolitan Police Department.
The case in the Southern District of Indiana is being prosecuted by Trial Attorney Brian Sardelli of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorneys Matthew Brookman and Debra Richards of the Southern District of Indianapolis. The case pending in the Northern District of New York is being prosecuted by Assistant U.S. Attorney Carla Freedman.
Three Members of International Synthetic Drug-Trafficking Organization Arrested in Los AngelesRead the Press Release
WASHINGTON – Three members of an international synthetic drug-trafficking organization—responsible for selling synthetic drugs with brand names like Twilite, Passion Sense, Stoopid, Black Diamond, and Platinum—were arrested in Los Angeles on April 14, 2015. The federal charges were unsealed in the Northern District of New York today. According to documents also unsealed in the Southern District of Indiana today, a leader of the organization has already pleaded guilty to federal drug-trafficking charges.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Richard S. Hartunian of the Northern District of New York, U.S. Attorney Josh J. Minkler of the Southern District of Indiana, and DEA New York Special Agent in-Charge James J. Hunt made the announcement.
"The manufacture and distribution of synthetic narcotics is a growing problem that is especially dangerous to the young people of our communities," said Assistant Attorney General Caldwell. "Drug traffickers peddle these illegal synthetic drugs with harmless sounding names to impressionable youth who are typically unaware of the harmful chemicals they actually are ingesting. The Criminal Division will continue to partner with local and federal law enforcement around the nation to stem the flow of these unsafe and illegal substances and bring the traffickers to justice."
"Despite the efforts of these drug traffickers to evade prosecution through the creation of synthetic drugs, these indictments demonstrate the ability of law enforcement to effectively respond to those who market these dangerous substances," said U.S. Attorney Hartunian. "We will continue to use all our resources to combat this national problem."
"Synthetic narcotics are not the harmless product traffickers and users make them out to be," said U.S. Attorney Minkler. "They are mind-altering substances that cause psychosis and even death with our nation’s youth."
"Abusing designer synthetic drugs is like playing a game of Russian Roulette, and DEA is aggressively going after those who import and distribute these poisons in neighborhoods and local communities," said DEA New York Special Agent in-Charge James J. Hunt. "These drug trafficking criminals have no regard for the health and well-being of those who abuse these drugs, nor do they have any regard for our nation’s laws. DEA must continue to attack these
dangerous drug facilitators who often prey on young, impressionable abusers, while educating Americans about this ever-changing new frontier of dangerous designer synthetic drugs."
Andrew Raymond, 36, Brian Requena, 37, and Zefren Michael, 35, all of Los Angeles, California, were indicted in the Northern District of New York for conspiracy to possess with the intent to distribute and to distribute controlled substance analogues in Central New York, intending that those analogues be used for human consumption. Raymond and Requena were also charged with a money laundering conspiracy.
In a related case, Roger Upchurch, 66, of Indianapolis, Indiana, pleaded guilty on March 11, 2015, before Chief U.S. District Judge Richard L. Young in the Southern District of Indiana, to conspiracy to distribute a controlled substance analogue and money laundering. Upchurch also forfeited over $2 million in cash and other assets obtained from his illegal activities, including a house, two cars and a Sweetwater pontoon boat. A sentencing date has not yet been scheduled.
As part of his guilty plea, Upchurch admitted that he was a leading member of the international drug-trafficking organization, working in the Los Angeles-area, to produce and distribute thousands of kilograms of smokable synthetic cannabinoids (SSCs) with brand names such as Twilite, Passion Sense, Stoopid, Black Diamond and Platinum. SSCs, also popularly known as "Spice," are smokable drugs that are designed to mimic marijuana. The synthetic chemicals used to produce these SSCs were imported from China, then applied to a plant-like substance and sold like marijuana in a smokable form.
According to allegations in the indictment, Raymond, Requena, Michaels, and others conspired with Upchurch to manufacture SSCs for distribution throughout the United States. In an effort to avoid detection and prosecution by law enforcement, the drug-trafficking organization allegedly mislabeled and fraudulently labeled packages with "not for human consumption" and other false statements, including falsely marketing their products as potpourri, incense or aroma.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This investigation is part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, and this case was supported under the DEA Special Operations Division’s Project Synergy. This case is the result of investigative efforts led by I.R.S. Criminal Investigations- Syracuse Office, DEA’s Syracuse Resident Office and DEA’s Indianapolis Field Office.
The case pending in the Northern District of New York is being prosecuted by Assistant U.S. Attorney Carla Freedman.
Three Indicted for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment today against Donnie Phillips, 56, of Concord; Gordon Miller, 57, of Clayton; and Phyliss Mosher, 51, of Vallejo, charging them with conspiracy to distribute methamphetamine and related methamphetamine trafficking charges, United States Attorney Benjamin B. Wagner announced.
According to court documents, between June 2014 and February 2015, Mosher sold large amounts of methamphetamine to an undercover agent. Phillips and Miller supplied the methamphetamine to Mosher. Transactions took place in the counties of Solano, Contra Costa, Yolo, Shasta, and San Joaquin.
This case is the product of an investigation by the Drug Enforcement Administration, the Vallejo Police Department, and the El Dorado County Sheriff’s Office as part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
If convicted, each defendant faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tahlequah Woman Sentenced to 60 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that MISTY DAWN BURTON, age 23, of Tahlequah, Oklahoma was sentenced to 60 months imprisonment, followed by 3 years of supervised release for Possession of a Firearm in Furtherance of Drug Trafficking Offense, in violation of Title 18, United States Code, Section 924(c)(1)(A) and 2.
The charge is a result of an investigation by the Cherokee County Sheriff’s Department and Bureau of Alcohol, Tobacco Firearms and Explosives. The defendant was indicted in September, 2014 and pled guilty in November, 2014.
The Indictment alleged that on or about March 19, 2013, within the Eastern District of Oklahoma, MISTY DAWN BURTON did knowingly possess a firearm in furtherance of a drug trafficking crime for which she may be prosecuted in a court of the United States, that is, Distribution of Oxycodone.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated facility at which she will serve her nonparolable sentence.
Assistant United States Attorney Dean Burris represented the United States.
Stockton Loan Officer Charged with Mortgage FraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against Mark F. Friend, 60, of Stockton, charging him with six counts of bank fraud relating to a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
According to the indictment, in 2005 and 2006 while working for National City Mortgage, then a division of National City Bank, in Stockton, Friend arranged loans for borrowers that contained numerous falsehoods. He submitted false loan applications and other documents, and he made down payments on behalf of borrowers who did not have enough money, and then was repaid out of escrow after the loans were funded. The loss to National City Bank was approximately $1.5 million.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys John K. Vincent and Christiaan H. Highsmith are prosecuting the case.
If convicted, Friend faces a maximum statutory penalty of 30 years in prison and a $1 million fine for each count of bank fraud. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sentencings for April 9 - April 13, 2015Read the Press Release
Samuel I. Miller, 27, of Denver, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on April 13, 2015, for conspiracy to distribute 500 grams or more of methamphetamine, and marijuana. Miller was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $900.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Alejandro Trevizo-Beltran, 24, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 10, 2015, for illegal re-entry of a previously deported alien into the United States. Trevizo-Beltran was arrested in Casper, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Miguel Acuna-Enriquez, 57, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 10, 2015, for illegal re-entry of a previously deported alien into the United States. Acuna-Enriquez was arrested in Gillette, Wyoming. He received seven months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Derek Skyler Brux, 22, of Wright, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 10, 2015, for violence against railroad carriers. Brux was arrested in Gillette, Wyoming. He received five years of supervised release and was ordered to pay a $100.00 special assessment and restitution in the amount of $63,212.76. This case was investigated by the Campbell County Sheriff’s Office and the Federal Bureau of Investigation.
Jeffrey Legrand, 52, of Rozet, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 9, 2015, for being a felon in possession of a firearm. Legrand was arrested in Rozet, Wyoming. He received 24 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case wasinvestigated by the Campbell County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
PACE Department Manager Arrested for Allegedly Accepting More Than $280,000 in Kickbacks and GratuitiesRead the Press Release
CHICAGO ─ The Department Manager of Applications at PACE was arrested yesterday on a federal complaint for allegedly accepting over $280,000 in kickbacks and gratuities in exchange for the influence he exerted in placing certain information technology (“IT”) contractors at PACE and in their employment at PACE.
In a criminal complaint that was filed on Monday in the U.S. District Court and unsealed yesterday, the defendant, RAJINDER SACHDEVA, 51, of Schaumburg, was charged with receiving kickbacks and gratuities in connection with his employment at PACE, which is the Suburban Bus Division of the Regional Transportation Authority and receives federal funds. He appeared yesterday before U.S. Magistrate Judge Susan E. Cox in Federal Court and is being held in federal custody pending a detention hearing at 4:00 p.m. today before Magistrate Judge Cox.
Sachdeva was arrested yesterday without incident in Schaumburg. According to the complaint affidavit, Sachdeva oversees the implementation and performance of the database management system Oracle at PACE. According to the complaint, he supervises both PACE employees in the Applications Department and IT contractors from outside vendors that provide Oracle IT support at PACE.
According to the complaint affidavit, between January 2010 and the present, Sachdeva corruptly demanded, accepted, and agreed to accept kickbacks and gratuities, intending to be influenced and rewarded with the hiring and continued employment of IT contractors who worked at PACE via outside vendors. Sachdeva allegedly concealed payments that he received, either by obtaining the money through a company that employed the IT contractors and in which Sachdeva’s wife possessed an interest, or by obtaining payments directly from the IT contractors.
According to the complaint affidavit, Sachdeva, via his wife or his own consulting company, was paid in excess of $280,000 between 2010 and 2014, in exchange for the influence he exerted in placing certain IT contractors at PACE and in their continued employment at PACE. The complaint alleges that one of the IT contractors that Sachdeva placed at PACE in exchange for kickbacks and gratuities during approximately 2013 took over the PACE IT support services previously performed by a different contractor. Sachdeva allegedly told a cooperating witness that he wanted his share for placing people at PACE and that Sachdeva stated that the current contractor was only getting the job because of the defendant’s efforts.
According to the cooperating witness, who along with Sachdeva’s wife owned the company used to conceal the kickbacks, the company hired a contractor to serve as a subcontractor for a vendor that had a contract to provide IT support to PACE. This contractor then began to work as an IT contractor at PACE. While the contractor was working at PACE, the cooperating witness and Sachdeva’s wife’s company paid Sachdeva (via his consulting company) and his wife over $64,000.
The complaint also alleges that Sachdeva directed yet another contractor, a former PACE analyst supervised by Sachdeva, to submit invoices for PACE IT work to the cooperating witness and Sachdeva’s wife’s company using the false name “Sue Peters.” According to the complaint, this contractor then sent an invoice to their company using the false name, and caused an invoice to be submitted to the PACE IT vendor who then invoiced PACE for the time. PACE paid the invoice for “Sue Peters,” and the cooperating witness and Sachdeva’s wife’s company ultimately received the money they had invoiced for “Sue Peters.” Around that time, Sachdeva also directed the cooperating witness to pay the contractor, who submitted the false invoice, approximately 80% of what their company had billed for the “Sue Peters” invoice, which the cooperating witness did.
The arrest and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, and Michelle T. McVicker, regional Special Agent-in-Charge of the U.S. Department of Transportation, Office of Inspector General. PACE also assisted in the investigation.
The government is being represented by Assistant United States Attorneys Matthew F. Madden and Erika Csicsila.
A complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Owner of Miami Home Health Company Sentenced to 113 Months in Prison for $32 Million Medicare Fraud SchemeRead the Press Release
An owner of a Miami home health care company was sentenced today to 113 months in prison in connection with a $32 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Felix Gonzalez, 45, of Miami, pleaded guilty on Jan. 9, 2015, to one count of conspiracy to commit health care fraud, and was sentenced today by U.S. District Judge Kathleen M. Williams of the Southern District of Florida. In addition to the prison sentence, Gonzalez was ordered to pay $21,423,160 in restitution.
Gonzalez was an owner of AA Advanced Care Inc. (AA Advanced), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. As part of his guilty plea, Gonzalez admitted that he and his co-conspirators operated AA Advanced for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary or not provided at all.
Gonzalez further admitted that he negotiated and paid kickbacks and bribes to patient recruiters in exchange for patient referrals, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Gonzalez admitted that he and his co-conspirators used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for home health care services.
From approximately January 2006 through March 2009, AA Advanced submitted approximately $32 million in claims for home health services that were not medically necessary or not provided, and Medicare paid approximately $22 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer and Trial Attorneys Kelly Graves and Lisa Miller of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Orlando Man Pleads Guilty to Investment FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Dante S. Giovannetti (50, Orlando) has pleaded guilty to wire fraud. He faces a maximum penalty of 20 years in federal prison. His sentencing hearing has been set for July 8, 2015. Giovannetti was indicted on February 11, 2015.
According to court documents, Giovannetti solicited four individuals to provide him with approximately $700,000 that Giovannetti claimed would be pooled, placed into a trading account, and used to trade in E-mini S&P 500 futures contracts. To induce his investors, Giovannetti represented that he had experience in earning profits from trading S&P futures, and provided investors with statements that showed large trading profits that Giovannetti claimed to have earned. Contrary to his representations, Giovannetti did not invest the monies in S&P futures, but instead used significant portions of the investors' funds for his personal benefit. To conceal his fraud, he provided his victims with false trading statements that had been doctored to show tens of millions of dollars in fictitious profits from trading S&P 500 futures contracts and more than $53 million in cash on deposit as of July 31, 2014.
After Giovannetti failed to return their money, his investors complained to the National Futures Association, which commenced an emergency examination of one of Giovannetti’s companies on October 14, 2014. On October 30, 2014, the U.S. Commodity Futures Trading Commission (CFTC) filed a civil action against Giovannetti and several of his entities in federal court in Orlando. A statutory restraining order was entered against Giovannetti and his entities that froze their assets, granted expedited discovery, and prohibited the destruction of documents. Giovannetti failed to comply with the orders of the Court, was held in contempt, and a warrant was issued for his arrest for his contempt in the CFTC civil case in November 2014. On November 21, 2014, Giovannetti was charged in a sealed criminal complaint in the Middle District of Florida.
After his scheme was uncovered, Giovannetti fled to Canada. On January 15, 2015, he was deported back to the United States. The following day, Giovannetti had his initial appearance on the criminal complaint in federal court in Seattle, Washington. He was detained and transported back to this District by the United States Marshals Service.
This case was investigated by the Federal Bureau of Investigation and the State of Florida’s Office of Financial Regulation, with assistance from the United States Marshals Service and the U.S. Commodity Futures Trading Commission. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Orlando Man Indicted on Child Sex Trafficking ChargesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Hermenegildo Nevarez Campa (33, Orlando) with two counts of sex trafficking children. If convicted on all counts, he faces 15 years, up to life, in federal prison.
According to the indictment, Campa obtained a 15-year-old and a 12-year-old girl for commercial sex acts. According to court records, both girls were encountered by Jacksonville Sheriff’s Office detectives during an undercover vice operation. Upon realizing the children’s ages, investigators with the North Florida Human Trafficking Task Force interviewed the children and learned that they had run away from home, were currently homeless, and were being sexually exploited by customers who paid money to have sex with them. The older child provided detailed information about a customer whom the children knew as “Chico,” later identified as Campa.
On March 11, 2015, a warrant was issued for Campa’s arrest and he was apprehended by investigators with the FBI and the Orange County Sheriff’s Office in Orlando, on April 9, 2014. Campa made his initial appearance, in Orlando, and is scheduled to appear in Jacksonville on April 17, 2015, for a detention hearing.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Northeast Florida Human Trafficking Task Force, a task force made up of investigators from the FBI and the Jacksonville Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Mac D. Heavener, III.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Nigerians Sentenced for Identity TheftRead the Press Release
HOUSTON – Moshood Balogun and Ayodeji Fashola, both 60, have been ordered to federal prison following their convictions in a mail and wire fraud conspiracy, announced U.S. Attorney Kenneth Magidson. The Nigerian immigrants each pleaded guilty in June 2014.
Today, U.S. District Judge David Hittner ordered Balogun to serve a total of 145 months in federal prison for his convictions of conspiracy to commit mail and wire fraud and aggravated identity theft. Fashola was convicted of conspiracy to commit mail and wire fraud and procurement of naturalization by fraud and was ordered to serve 168 months in federal prison. They were further ordered to pay restitution in the amount of $1,681,521.69. Both men are naturalized U.S. citizens. However, Fashola’s citizenship was revoked after he admitted he committed fraud in its procurement and is expected to face deportation proceedings following release from prison.
Fashola formed a shell company called Kingsway Credit Collection in Cypress. He used the company to purchase credit profiles from a credit reporting company in Kennesaw, Ga. The credit profiles contained the names, dates of birth, Social Security numbers, addresses and other personal identity information (PII) of people located throughout the United States.
Fashola transferred the PII to Balogun, who then sold it to criminals throughout the country who used the information to commit a variety of different fraud schemes such as credit card fraud and bank fraud. Records show that Kingsway Credit Collection received as many as 100,000 credit profiles during this scheme and Balogun charged his customers $40 to $50 for each credit profile.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Jay Hileman is prosecuting the case.
New York Man Charged with Possession of A Fraudulent Passport CardRead the Press Release
Jed Bernard Connally, 55, of St. Albans, New York, was charged today by indictment with possession of a fraudulent U.S. passport card. The indictment charges that the defendant committed this offense on or about June 17, 2014.
If convicted, the defendant faces a maximum of ten years in prison. The defendant also faces three years of supervised release, a $250,000 fine, and a $100 special assessment.
This case was investigated by the Diplomatic Security Service, and is being prosecuted by Assistant United States Attorney V. Paige Pratter.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New York City Tax Return Preparer Pleads Guilty to Preparing and Filing False Tax ReturnsRead the Press Release
A Queens, New York, tax return preparer pleaded guilty today in U.S. District Court in Brooklyn, New York, to 38 counts of aiding and assisting in the preparation of false federal income tax returns and four counts of filing false personal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the allegations in the indictment, Celamour Berus, 61, owned and operated Celamour Enterprises, a tax return preparation business located at his home in Springfield Gardens, New York. For tax years 2007 through 2011, Berus prepared false individual income tax returns that claimed false charitable contributions, unreimbursed employee expenses and other itemized deductions for clients of Celamour Enterprises. Berus also falsified his own tax returns for tax years 2007 through 2010 by failing to report all of the gross receipts generated by his tax preparation business and claiming false itemized deductions for unreimbursed employee expenses.
Berus faces a statutory maximum sentence of three years in prison and up to a $250,000 fine for each count at his sentencing set for Aug. 18 before U.S. District Judge Allyne R. Ross of the Eastern District of New York.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-CI, who investigated the case, and Trial Attorneys Jeffrey Bender and Brittney Campbell of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of New York for their substantial assistance.
New Iberia man pleads guilty to producing child pornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a New Iberia man pleaded guilty to videoing boys engaging in sexual activity over the internet.
Raymond F. Doyle III, 40, of New Iberia, La., entered a guilty plea before U.S. District Judge Richard T. Haik for one count of producing child pornography. According to evidence presented at the guilty plea, Doyle began communicating with numerous boys in the summer of 2011 using the internet and the video streaming internet service Skype. One of the boys was age 14 and from Oklahoma. Doyle caused the minor to engage in sex acts while being videoed using Skype. Doyle also sent the minor a sex toy to use during the video sessions. United States Postal Service agents determined Doyle’s location on April 12, 2012 by examining information related to the sex toy’s shipment. A search of Doyle’s home computer revealed evidence that Doyle had contact with more than 60 boys. In most cases, Doyle pretended to be a female in order to encourage the boys to communicate with him.
Doyle faces mandatory 30 years in prison, lifetime of supervised release, and a $250,000 fine. He is also required to register as a sex offender. A sentencing date was not set.
The U.S. Postal Service and Homeland Security Investigations investigated the case. Assistant U.S. Attorney John Luke Walker is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.
Nassau County Man Pleads Guilty to Drug and Firearm ChargesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Shavon Tavin Anderson (22, Nassau County) yesterday pleaded guilty to two counts of distribution of cocaine and one count of possession of a firearm by a convicted felon. He faces a maximum penalty of 50 years in federal prison. A sentencing date has not yet been set.
According to court documents, as part of a Drug Enforcement Administration task force operation in Nassau County, Florida, on February 6, 2015, Anderson met with a member of the Nassau County Sherriff’s Office acting in an undercover (UC) capacity. During the meeting, Anderson sold the UC cocaine and marijuana. A week later, he again met with the UC and sold him cocaine.
On March 5, 2015, Anderson met with the UC as part of an arranged drug sale, during which he was supposed to provide the UC with a half kilogram of powder cocaine in exchange for $24,000. Upon arrival, Anderson provided the UC with a smaller amount of what was later determined to be fake cocaine. When law enforcement agents moved toward the vehicle to arrest Anderson, he exited and began running. As he fled, officers observed a firearm tucked inside the waistband of Anderson’s pants. After a brief pursuit, Anderson was arrested and the loaded firearm was recovered.
As a previously convicted felon, Anderson was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Nassau County Sheriff’s Office and the Drug Enforcement Administration Drug Task Force. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Mother and Son Meth Team Sentenced to Federal TimeRead the Press Release
Montgomery, Alabama— A mother and son were sentenced in federal court yesterday after pleading guilty to conspiracy to distribute methamphetamine, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. Modesto Barajas De Chavez, 50, originally from Mexico but living in Deatsville, Ala., was sentenced to 14 years in federal prison. John Candido Chavez, 28, born in California but also living in Deatsville, Ala., was sentenced to 15 years and 8 months in federal prison.
Modesto De Chavez and John Chavez were part of a drug trafficking organization that was responsible for selling large amounts of methamphetamine in Autauga, Elmore, and Montgomery Counties. They were arrested in May of 2014 at their residence in Deatsville where law enforcement seized approximately six pounds of meth, several firearms, including two assault weapons, and over $13,000 in cash. During the sentencing hearing, the judge heard statements indicating the defendants used two of Ms. De Chavez’s other minor children to facilitate their drug trafficking operation. Ms. De Chavez, who does not speak English, used her minor children to communicate with her suppliers.
“This family was not only spreading poison to our citizens, but were protecting their drugs with assault weapons and hiding these assault weapons under a child’s bed,” stated U.S. Attorney Beck. “Drug dealers that use illegal firearms and children to further their drug dealing should be and will be prosecuted to the fullest extent of the law.”
The case was investigated by the Central Alabama Drug Task Force, the Elmore County Sheriff’s Office, the Millbrook Police Department, the Prattville Police Department, the, Autauga County Sheriff’s Office, the Montgomery Police Department, the Montgomery County Sheriff's Office, the Alabama Attorney General’s Office, the Alabama Law Enforcement Agency (ALEA), the Drug Enforcement Administration (DEA), the Alabama High Intensity Drug Trafficking Area (HIDTA) Operations Center, the Alabama National Guard Counterdrug Program, and the Alabama Fusion Center. This case was prosecuted by Assistant United States Attorney Verne Speirs.
Mexican National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOEL CANUL-CAUICH, age 26, a citizen of Mexico, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien.
U.S. District Judge Lance M. Africk sentenced CANUL-CAUICH to time served and a $100 special assessment. CANUL-CAUICH will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about January 20, 2015, CANUL-CAUICH was found in the United States after having been officially deported and removed on or about April 20, 2010.
U.S. Attorney Polite praised the work of the United States Customs and Border Protection in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Member of Hacking Group Sentenced to 3 Years in Prison for Intrusions into Corporate and Governmental Computer SystemsRead the Press Release
LOS ANGELES – A member of the SwaggSec hacking group was sentenced today to three years in federal prison for participating in a series of computer attacks that compromised computer systems at DirecTV, Farmers Insurance and the Los Angeles Department of Public Works.
Mario Patrick Chuisano, 32, of Staten Island, New York, who used the online monikers “fame” and “infam0us,” was sentenced this morning in Los Angeles by United States District Judge S. James Otero.In addition to the prison term, Judge Otero ordered Chuisano to pay $2,662,438.80 in restitution to the three victims.
Chuisano pleaded guilty in June 2014 to conspiracy to intentionally cause damage to a protected computer, as well as to possession of an unregistered firearm, namely a sawed-off shotgun. In addition to the sawed-off shotgun that was discovered in Chuisano’s residence during the execution of a search warrant, agents from the Federal Bureau of Investigation recovered an unregistered handgun, brass knuckles, and equipment that could be used to manufacture counterfeit credit and debit cards, according to court documents.
During 2012 and 2013, SwaggSec, or “Swagg Security,” carried out a series of computer attacks and released some of the information stolen from the compromised systems through an eponymous social media account.
When he pleaded guilty last year, Chuisano, a self-taught “hacker,” admitted that he installed a Remote Access Trojan (R.A.T.) installed on the computer of an insurance agent and that he used the R.A.T. to gain access to the computer and steal reports and documents related to sales agents, as well as thousands of sent and received e-mails and passwords from Farmers Insurance.
“The theft and release of passwords is particularly disturbing because many people use the same passwords for activities of daily Internet life, such as banking and device access,” prosecutors wrote in a sentencing memo filed in relation to today’s hearing. “Publishing stolen passwords accompanied by other identifying information about individuals invites ‘follow-on’ victimization. Moreover, even the naked passwords absent other identifying information can be used by criminals to increase password databases used in brute-force password cracking programs.”
In relation to the attack against the Los Angeles Department of Public Works, hackers, including Chuisano, exploited vulnerability in Adobe’s ColdFusion platform to steal e-mails and personal identifying and health information for more than 3,000 people.
SwaggSec is believed to have patterned itself after the similarly named LulzSec, a group of computer hackers who carried out a series of high-profile computer attacks in 2011. Two members of LulzSec – Raynaldo Rivera, also known as “neuron,” and Cody Andrew Kretsinger, also known as “recursion” – were prosecuted by the United States Attorney’s Office in Los Angeles and received prison time for their roles in the attacks (See: http://www.justice.gov/usao/cac/Pressroom/2013/102.html).
This investigation into SwaggSec was conducted by the Federal Bureau of Investigation, Los Angeles Field Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division.
Release No. 15-034